China New Higher Education was Initiated Covered by CICC with ＂Recommend＂ Rating and a Target Price of HKD6.50

(20 October 2017, Hong Kong) China New Higher Education Group Limited (“China New Higher Education”, together with its subsidiaries, “the Group”, stock code: 2001.HK) was initiated covered by CICC with "Recommend" rating and a target price of HKD6.50. CICC was optimistic about the role of China New Higher Education as a higher education sector and applied science higher education practitioner.
 
CICC believed that the leading position of China New Higher Education in the private higher education sector would benefit from high profit margins, high entrance barrier, steady cash flow, and the overall growth from the outstanding characteristics among the integration of new Private Education Promotion Law’s trend. Furthermore, the Group provides high-quality of practical education, with unique dualism teaching methods and in-depth combination with enterprises offering practical experience towards employment needs to improve the competitiveness of students. In the past four years, the group has recorded over 98%, much higher than the industrial average employment rate.
 
CICC expected the Group might have a compound annual growth rate of 12% in total enrolled students in the next three academic years to fill the shortage of local higher education resources. Based on the factors of the Group's market potential, over average employment rate, demand for applied talents, and strong endogenous growth trends, CICC is optimistic about the future development prospects of the China New Higher Education, initiated "Recommend" rating and a target price of HKD6.50, corresponding to 25 times of price-earnings ratio in 2018.